Twelve years after launching the program, Target has officially ended its policy of matching prices with those of competitors, including Amazon and Walmart. Effective as of July 28, the retail chain will now only price match products within its own store network and online, within 14 days of a price drop. A Target spokesperson explained that the switch reflects its customers’ overall satisfaction with the retailer’s price offerings. “We’ve found our guests overwhelmingly
elmingly price match Target and not other retailers, which reflects the great value and trust in pricing consumers see across our assortment and deals,” the spokesperson said.
Some retail experts say this step marks a smart, though potentially overdue, cost-cutting strategy on Target’s part.
“Removing this policy provides more financial certainty and helps to protect its profit,” Global Data’s managing director Neil Saunders explained. “Target’s profitability and margins have weakened over recent years, and it needs to be more financially disciplined.
“Ending price matching helps to achieve this, even if only marginally, especially at a time when costs are rising because of tariffs. But this is only one part of the puzzle, and there still is a lot more Target needs to do to bolster its bottom line.”
The move comes as the retailer faces slumping sales and growing customer dissatisfaction.
Saunders warned that Target “will need to deal with any fallout and work hard to convince customers it is competitive and offers great value for money. Something it has struggled with.”
Mixed reactions to Target’s new price-matching policy
Similar to Saunders, Chuck Bamford, the founder of strategy consulting firm Bamford Associates, said Target’s step “seems like a very solid move by the leadership to eliminate costs on an orthodox element and focus the time, money and management mental firepower on something that might actually be a competitive advantage.”
However, Mike Hogenmiller, a self-described “retail critic” and principal of MHH Consulting, described it as another misstep on the retail giant’s part.
In a LinkedIn post, he posed the question, “How many bad decisions can you make?”
He noted that the new policy puts the onus on the customer to hunt for the best price within the brand’s own store network. Additionally, he pointed out that Target has already reduced prices on over 10,000 items over the past several months, which has done little to aid foot traffic or “change their trajectory”.
“This is not normal behaviour for a retailer, unless, of course, you just don’t believe in the customer,” Hogenmiller added.
Worse yet, longtime retail strategist David Happe said it simply underscores Target’s overall growing strategic uncertainty.
How Target can escape the middleman syndrome
In a recent newsletter post, Happe explained that Target’s price-matching move marks a “classic cutting toward the middle – an execution that reassures nobody”.
“In retail, uncompetitive pricing is never the answer to fierce competition. This looks less like strategic recalibration and more like desperation,” Happe said.
While the retailer’s decision to abandon competitor price matching may offer momentary accounting relief, Happe cautioned that “it symbolises something deeper: a retailer losing its way in a landscape shaped by Walmart’s efficiency, Amazon’s speed, and consumers’ shrinking patience. You don’t win by compromising your identity for short-term margin gains.”
Happe pointed out that many customers have already announced their frustration, vowing to go to other, more price-effective competitors like Amazon or Walmart.
He also noted that removing price-matching does not address deeper liabilities, such as stagnating foot traffic, brand fatigue and rising input costs.
That being said, Happe believes Target’s leadership can still reverse course, without surrendering to a price war. Here is how he believes the retailer can achieve a multi-pronged revival:
Doubling down on exclusive lines
“Reinvigorate proprietary brands like Good & Gather, Cat & Jack and other ‘Tar‑jay’ exclusives that lock in shoppers regardless of competing offers.”
Enhancing omnichannel execution
“Intensify free delivery, curbside pickup, and same‑day services to shift value from pricing to convenience and experience—differentiation beyond price alone.
Streamlining store experience
“Resolve inventory chaos: invest in frontline staffing, retrain store managers, and bring back well‑maintained aisles to restore trust and brand respect.”
Refocusing brand purpose
“Move beyond DEI optics through transparent, community‑centred initiatives—not defensive policy reversals—reclaiming consumer goodwill.”
Focusing on a smart pricing infrastructure
“Rather than wholesale price gouging, deploy analytics-driven targeted promotions: flash deals, loyalty tiers, geo‑based pricing that feel personal—not punitive.”
Hiring better merchants
“Walmart is beating Target on values, and Amazon is beating Target on selection. Target needs to reclaim its identity.”